If you watch much television – or any, for that matter – you’ve probably seen the Mac vs. PC commercials. It’s a brilliant campaign, actually, since it sticks in people’s minds and gives an idea of what Apple’s Macs are all about.

Well, the credit union industry has started a parody of the Mac vs. PC ads, and you can view them here. The concept is similar: Show the difference between banks and credit unions.

So, what are some of the differences? Well, according to the Credit Union National Association, there are three major differences.

The first is that credit unions, obviously, are not-for-profit cooperatives: Money goes back to the members in the form of lower fees and loan rates and higher interest rates. Stockholders, on the other hand, own banks and get the profits.

Credit unions are owned by the members. It’s why Premier’s Boulder branch has signs stating “Premier Members Owner Parking Only.” Those spaces are reserved for anyone who has an account at Premier Members. Banks, again, are owned by outside stockholders who may or may not have money invested in the bank.

Finally, volunteer boards operate credit unions. Boards that often are paid very well run banks.

After the financial crisis, it’s time to let more people know about the reasons of joining a credit union. Tell everyone you know to ditch his or her bank and join a credit union.

Posted in news | No Comments »

With these increases, Wall Street should top the amount it paid its employees before the financial crisis and the bailout, according to the report. The six top banks have set aside $74 billion, $14 billion more than last year, to pay their employees. This amount covers salaries and benefits.

One example cited in the article is Goldman Sachs. Over the first half of the year, the company has set aside $11.4 billion for their employees. If the trend continues, the employees could earn an average of $773,000 for the year.

Of the six banks, only three – Goldman Sachs, Morgan Stanley and J.P. Morgan Chase – have repaid the money they borrowed from the American taxpayers. The other three, Citigroup, Bank of America and Wells Fargo have not. However, all six still receive some kind of assistance through emergency federal programs.

The argument made from Morgan Stanley is that they have to pay their employees competitively or face losing them. It’s an understandable argument, but this is a company that just earlier this year asked the United States Government for help so they wouldn’t go under.

President Obama addressed the issue in a news conference earlier this week. “With respect to compensation, I’d like to think that people would feel a little remorse and feel embarrassed and would not get million-dollar or multimillion-dollar bonuses,” the president said.

Now, whether you are a Democrat or a Republican, you have to wonder what these investment banks are thinking. Do you believe these banks should give raises to their employees? What about the three that still need to pay back their bailout money?

Posted in news | No Comments »

According to a report by the Associated Press, an industry expert believes it is a way for Starbucks to test changes in the menu, store design and procedures.

The new store, “15th Avenue Coffee and Tea inspired by Starbucks,” is the first pilot store to open and will have nighttime hours and live entertainment. The idea behind the new name is to draw consumers in who may be wary of large corporations, but it isn’t just a new name.

When the shop opens, it will look different from the familiar Starbucks in not only the ambiance but also the menu. As reported in USA Today, the pilot store will have six different beers and wines from the northwest. (Don’t expect to stop in and get a beer to go on your next visit to Seattle, though. State law prohibits alcohol to be sold to go.)

It should be an interesting experiment, to say the least. If successful, will we see the Colorado Starbucks get new names and add local microbrews to the menu? Would New Belgium want to get in some of these Colorado stores?

Let’s wait and see.

Posted in news | No Comments »

Pinnacol Assurance, the political subdivision responsible for providing worker’s compensation insurance, allegedly spent money on large employee bonuses, golf outings, dinners at expensive restaurants, large booze tabs and some stays at high-end hotels. The problem appears to be that the spending was happening at the same time state legislators were looking to take some of the organization’s surplus to aid the state’s budget.

Without getting into too much of the details, since you can read the article yourself, some of the spending the Call7 Investigators examined included

The station interviewed Pinnacol’s CEO, Ken Ross, who claimed all of the spending was appropriate. His defense is that Pinnacol is not a state agency and none of the employees is employed by the state – in Ross’ eyes, the company is private. It would seem that Colorado really can’t force the issue, or can it?

Colorado started Pinnacol in the early 1900s to act as the state’s “insurer of last resort for worker’s compensation insurance.” Around ten years ago, the state chose to let the company act as a mutual insurance company. Here’s where it gets sticky: State legislators say Pinnacol is a private and a public company.

Before responding, be sure to read the whole article. Where do you stand? Is Pinnacol spending money it shouldn’t? Do you feel the Call7 investigation was fair and balanced?

Posted in news | No Comments »

First, let me say I am all for bonuses. When an employee does good work, his or her company should reward him or her for it. Now, whether that’s a cash reward or some time off, it’s up to the discretion of the employer. However, there are times where too much is just too much.

AIG, as you may remember, borrowed $80 billion (yes, billion) from the government back in September to help keep them from collapsing. To date, the company has received almost $180 billion in taxpayer money.

In March, the company handed out $135 million dollars to the financial products division employees. The public didn’t take that well, leading to an uproar of unhappy taxpayers. Some of the AIG staffers gave the money back, and some even resigned from their jobs.

Well, AIG is talking to the Obama Administration’s chief financial bailout czar, Kenneth Feinberg. They’re reportedly asking for permission to pay out $235 million to roughly 400 employees. That translates to $587,500 per person.

Here’s the kicker: They don’t have to ask permission. Because the bonuses were contracted in 2008, Feinberg cannot tell them what to do. He only has power to stop payments for items contracted in 2009, according to the article.

Is AIG being sincere? Maybe. Are they just doing it to show the public that they changed (essentially a publicity stunt)? Probably.

How do you feel about AIG paying out these bonuses?

Posted in news | 1 Comment »

Here are some interesting statistics about financial aid. For example, did you know that nearly 66 percent of undergraduate students took some form of financial aid in 2003-04? Given the way tuition has steadily increased, you would have to assume that more undergraduate students have picked up financial aid as well.

The good news is that you may qualify for help. Through the College Cost Reduction and Access Act of 2007, hundreds of thousands of qualified borrowers can take part in the Interest-Based Repayment plan that took effect on July 1.

Essentially, the IBR factors in how much a recent graduate is earning and bases their payments off their annual discretionary income. It’ll help immensely for those who are scraping by in this tough economy. Read more about it here.

The best part could be that it doesn’t mean that you’ll be repaying the loans for the rest of your life. If you’re paying the lower amount and still haven’t paid it off in 25 years, the remaining amount will be forgiven, according to the blog. And, if you’re working in a government job or for a non-profit that meets the correct criteria, you could have your outstanding balance eliminated after 10 years.

If you find yourself struggling to save money, to buy a home or just to get by because of your student loans, this program could help you out. Contact your lender to get more information and to see if you qualify.

Posted in news | No Comments »

I remember my family setting off fireworks when I was a kid. I specifically remember getting little cardboard tanks and jeeps that had a firecracker as the gun on it. You’d light the fuse, and the whole cardboard tank would explode in a shower of shredded paper. While those were cool to watch, sparklers were probably my favorite, followed closely to the colorful smoke bombs.

But, why is the holiday my favorite? I think it has more to do with what the day represents: Not only does it just feel like summer, but it means we’re free. Think about the gutsy vote our founding fathers made on July 2, 1776 when they resolved to declare the colonies independent from England. They cast their votes knowing they would be labeled traitors to the crown, and yet they did it.

On July 4, 1776, our founding fathers signed the Declaration of Independence, one of the greatest documents ever written.

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.”

It’s an incredible, moving line, isn’t it? Think about what it means as you celebrate this weekend. Also, please take a minute to remember everything that our forefathers have done to ensure that we get to live by it.

And, if you’re looking for a good fireworks display this weekend, check out this Web site to find a show near you.

Posted in news | No Comments »

JPMorgan Chase, which provides the most credit cards, has increased their fees the most, according to the article. Some customers now will have a minimum payment of 5 percent on outstanding balances. If a person carries a balance of just $2,000, they’re paying $100 a month!

Citigroup has raised rates on outstanding balances, reportedly, by nearly 3 percent. For roughly 15 million cardholders, their new rate is right around 24 percent. That money adds up quickly.

So, why did the banks do this? They did it to keep up their profit margins and absorb losses, since the higher rates will require higher payments. Keep in mind, credit unions are not interested in profits, but are interested in helping the members find financial security.

Building credit is important, but it sure seems like doing so is going to be tough. If you’re tired of bank fees and high interest rates, get in touch with Premier Members. We can find a loan that can help you consolidate that debt at a much lower interest rate. Currently, in fact, we’re running a promotion for a Home Equity Line of Credit at a special introductory annual percentage rate of 2.99% for well-qualified members. That rate is good through the end of the year, and you have to apply by September 30.

If you’re looking to build your credit and want a credit card, you’ll find our credit cards much more reasonable.

It’s time to join the credit union movement.

Posted in news | No Comments »